The post Did the FED just trigger a recession by not cutting rates earlier? appeared on BitcoinEthereumNews.com.

While the U.S. stock market losses on Wednesday, September 4, were less severe than those of the previous day, the state of the U.S. stock market following the Labor Day holiday has gotten investors worried about a possible start of a major crash. One factor often pointed to as a possible cause of a future recession has been the Federal Reserve’s prolonged period of high interest – far longer than it should have been, according to multiple analysts. Ryan Detrick, the chief market strategist at the Carson Group, is of the opinion that America’s central bank should have started reducing the Federal funds rate during the previous FOMC meeting, according to an interview he did on September 4. Detrick also believes the FED has contributed to several cracks in the U.S. economy – such as the rising rate of layoffs – precisely by not loosening its policy sooner: There’s some concerns there. You look at hirings up 5%, but hey, layoffs up, you know, double digits… there are some cracks out there. That’s why we’ve been in the camp that the Fed probably should’ve cut last time. Recession in the coming six months ‘extremely unlikely’ Simultaneously, despite believing the Federal Reserve has made an error, the expert remains bullish on both the economy and the stock market and has taken a similar stance to many other analysts – that the ongoing downturn is more of a mid-cycle slowdown than a prelude to a recession. Detrick also believes the broader technology sector will remain flat for some time but does not see that as an issue for other publicly traded companies and has pointed toward mid-caps as a significant pointer that the market is, generally, still doing well. In fact, according to   the chief market strategist, the current state of…

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Filed under: News - @ September 5, 2024 11:26 am